The Central Bank of Nigeria (CBN) concluded its landmark 300th Monetary Policy Committee (MPC) meeting on Tuesday, May 20, 2025, with a firm decision to maintain all key policy parameters. In a unanimous vote, the committee resolved to retain the Monetary Policy Rate (MPR) at 27.50 percent, citing ongoing efforts to stabilize inflation and sustain monetary tightening.
In a press briefing following the meeting, the CBN confirmed the retention of several critical monetary tools. The Cash Reserve Ratio (CRR) was maintained at 50 percent for Deposit Money Banks and 16 percent for Merchant Banks, reflecting the apex bank’s commitment to managing excess liquidity within the banking system.
The Liquidity Ratio (LR) was also kept steady at 30 percent, ensuring that banks maintain adequate liquidity to meet their short-term obligations while not overstimulating the economy. Additionally, the Asymmetric Corridor around the MPR was preserved at +500 and -100 basis points, providing continued flexibility in the bank’s interest rate framework.
The CBN emphasized that these decisions are part of its strategy to contain inflationary pressures, enhance financial stability, and support Nigeria’s broader macroeconomic objectives. The Committee noted that inflation remains a critical concern, driven by factors such as food price volatility, exchange rate dynamics, and global economic uncertainties.
While analysts had speculated about a possible rate hike or further tightening to address rising consumer prices, the MPC’s decision to hold rates signals a cautious but steady approach aimed at consolidating recent gains in price stability and banking sector resilience.
